Category Archives: Real Estate

5 Lines of CREDIT?!?!

So I was talking to our family Bank of America banker today, Liz Miller who has been treating me very well. Because my parents have a preimer banking account relationship with them I was able to get a killer rate. Here is the difference, and its good to shop around, for the best loan, and interest rate for you:

Heres the DEAL:

  • House and Duplex, for $310,000
  • Seller pays $10,000 closing cost.
  • 10% down

1st Mortgage Quote

  • 80/10 mortgage, interest only, 5/6 arm, 3yr pre-penalty One point on the first, and one point on the second
  • Interestate rate around %7.35 on the first, and %12.375 on the second
  • Monthly payments around $2,100 a month
  • 11,000 closing costs

Preimer Banking Quote

  • 80/10 Mortgage, interest only, 5/6 arms, no prepayment penalty, no POINTS!
  • Closing costs at around $5000
  • Interest rates: %6.375 on the first, and $7.375 on the second
  • Monthly payments around $1,900/month

THATS A $200 a month difference, PLUS no prepayment penalties, and LESS THAN $5,000 ON CLOSING COST, W/O POINTS.

That is a HUGE! Difference, and but what I found out today. Is that I don’t qualify because I don’t have 5 lines of credit. 5 Lines of credit, as in 5 credit cards, a loan counts as a line of credit, payments, credit, 5 lines. I only have two lines, a personal credit card with Wells Fargo, and a personal credit card with Bank of America. Although I have another Card in my corporation, it doesn’t count because its a corporation. So surprisngly with this killer rate, I was not accepted!

But, that is super fantastic, I’ll just co-sign with my parents and everything will be ok.

So futher note to anyone, do you have credit? My credit score is 725 as a 19 year old, if you don’t have a credit card, or building your credit in some way, start building credit, if you want to use the banks money to purchase a property, stop delaying, do it. Anyways, looks like more lines of credit is better for, Bank of America, or at least, required in order to get a loan through them.

I’m doing incredible and so should you. I know there is spelling errors, but who really cares? My employeer? LOL!!! I’ll be honest, I’am ANTI JOB, because JOBS just make someone else RICH.  I’am a millionaire or I Is a millionaire, does it really matter? IS You a millioanire too, you can be, and we’ll do it together, build your credit score so you can use the bank’s money to purchase investment property that the renters pay for

I wish you, and your family massive success, look forward to being at the next OSU Real Estate Gathering with you all, and helping you, achieve success.

Some Properties Are To Much Trouble

Kings Real-Estate 1Today was an awesome day, I woke up at around noon, killed a econ 201 test, and then went ahead and did the visual inspection of the property on Kings Blvd for sale.  My first offer was for $284,000 and the seller pay $9,000 closing cost, he declined with no counter.  A week later, I offered $305,000 and then requested he pay $12,500 in closing cost, he countered, and then I accepted a counter offer of $310,000 and he pay $310,000, netting him $310.scaledimage3aspx.jpg

The property, well, although the property looks very nice from the MLS pictures.  There is alot of problems with the property, the landlord did not particuarly take care of the property like I would, alot of things were what I called, “Band-Aided” together, quick fixes.  Quick fixes, in anything is horrible, the worst way to go, quick fix, relationships, quick fix problems, just end up being needed to be worked on in the future.  Well this property definintely had some quick fixs to it, actually, a whole lot of them.

scaledimage2aspx.jpgThe car port was falling apart, the paint was feeling like it was coming off the walls, the duplexes were extremely small, and cracked windows.  There were cracks in the foundation, a cheap roof on both buildings, and the wiring was extremely old just to name a few.  The property was dirty, and unfortunately not a very nice feeling property, I don’t know if I would like to live there.

scaledimage4aspx.jpgI appreciate my father, greatly, he came down from Portland and helped me do the visual walk through.  We are not even bothering with paying for an inspection.  Sometimes, properties need so much work, it is not even worth purchasing the property when you can buy other properties at similiar prices, but don’t need the work. 

I’am now focusing on a 4plex unit in N Portland, where I believe it is poised for some rapid appreciation.  There is alot of buildings in that area which are doing improvements, “when the neighbors are improving their buildings, making them nicer, it raises the value of the homes around it, this is what you want.”  Unlike this area, no body was making their homes nice, it almost looks like everyone was letting their house fall apart around here?  Maybe its just there area in corvallis I was looking at.  So I’m passing up my offer with the house and duplex, and now focusing on some other units.

We actually looked at two houses, and walked through them one for $179,000, and another for $199,000 which were also very very nice, and I may be interested in throwing an offer at with my realtor, Cody Willner.

A Semi-Typical Day In My World

Well I’m finishing this blog at about 6am, it is not uncommon for me to go to bed very late because I’m normally up working on my laptop. With the 24/7 activity on the world wide web, it really doesn’t matter whether or not I’m working at 9-5pm, so as an entrepreneur, we are able to set out own hours and work whenever we want. It is a great experience.

Today, my friend Charmon helped me study for a Sociology Test, which I took today. I m unsure what grade I’ll get in the class, and then I studied for my math final on Wednesday. After that it was about 9pm, however, it was the start of my business productive day. After getting home I talked with Marc Rogers, an individual in Portland, OR who is helping me find an investment property to purchase in North Portland. Then, I went ahead and talked to the mortgage broker to give me some more good faith estimates to see compare the numbers on different loans. My real estate transaction is going along well. I saw several multi family units in N Portland, however nothing to exciting. They all bring around 22-25k gross per year, they are all around 300k for a three units. The pictures were some of the properties that I have been looking at as possible investments. And for those people who don’t understand leverage, no, I do not have 300k liquid cash sitting in my bank account. Not yet anyways, but no, I’m borrowing the money from the bank. To many people say I do not have money, if I did I would invest. Well don’t kill yourself mentally, OPM, other people’s money, use the bank’s money not your own.

Then I logged into Facebook, and there were several messages from other entrepreneurs who I have began to network with. One individual is starting a next work marketing company selling personal defense weapons, and devices; although I respectfully declined it was quite interesting to see what he was doing. Another individual was creating an online community for aspiring entrepreneurs; his site blulite thought was very hard to navigate. Another guy Adrian is a ETF trader and creating a good sum of cash working part time, but producing full time income.

I also got in contact with Ben Casnocha, as listed below, I emailed him and he replied back giving thanks. I’ve just been recently at aw on the great people I’m able to talk to. With almost everyone I know going places, I’m going with them, and my other friend Chris, had his lyrics featured in Source magazine. That is incredible, working with Snoop Dogg, and he has Nas who is interested in his beats. Wow, everyone is doing great, and I’m just living it with them. Anyways, afterwards I had fun working on writing my book on the law of association for about an hour and a half. Read some other entrepreneur blogs, some interesting news on Donald Trump, and then started to work on programming my new web 2.0 community which is starting to look good. I also made an offer on a domain name I’m interested in purchasing, however I still can’t tell everyone what the web 2.0 community I’m creating untill it is already launched.

So this is a random rant on what s go on in my world, and a pretty typical day of networking, and working on sites. I’ll finish it off by reading 10 pages of a good book, Six Great Ideas, by J. Mortimer Adler.